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Free Practice Assessment
Is Your Practice Financially Healthy?
Answer 12 questions across 6 revenue cycle dimensions and get a financial health score, category-by-category breakdown, and a personalized action plan showing exactly where your practice is leaking revenue — and how to stop it.
The Six Dimensions
What Each Dimension Measures — and Why It Matters
Your practice’s financial health is determined by performance across six interdependent revenue cycle dimensions. A weakness in any one reduces total collections.
Denial Management
Your denial rate and denial follow-up rate are the two highest-impact billing metrics. A denial rate above 5% and 50%+ of denied claims going unworked are the most common sources of preventable revenue loss.
Denial Management ServicesCoding Accuracy
Systematic undercoding and coding-based denials (CO-4, CO-11, CO-97) silently drain revenue. AAPC-certified specialty coders and pre-submission NCCI scrubbing eliminate this category.
Medical Coding ServicesAR Performance
Days in AR and net collection ratio measure how quickly and completely earned revenue is collected. Below-benchmark performance indicates process failures that compound every month.
Revenue Cycle ManagementEligibility Verification
Eligibility and prior authorization failures produce fully preventable denials on services already rendered. Real-time pre-visit verification and a systematic PA workflow eliminate both categories.
Insurance VerificationPatient Collections
With high-deductible plans making patients responsible for more of their care cost, patient balance collection is now 25-35% of total practice revenue — yet average collection rates remain 60-70%.
Virtual Assistant ServicesPayer Contracts
Contracts signed at credentialing and never renegotiated often pay 15-30% below current market rates. A fee schedule benchmark analysis across your top 20 CPT codes quantifies the exact annual gap.
Provider CredentialingCommon Questions
Practice Financial Health — FAQ
How do I know if my medical practice is financially healthy?
A financially healthy practice operates with a net collection ratio above 95%, denial rate below 5%, days in AR under 35, clean claim rate above 95%, patient balance collection rate above 75%, and payer contracts renegotiated within the past 2 years. Most practices fall short in 2-4 of these dimensions, leaving 13-18% of earned revenue uncollected. This assessment scores your practice across all six and identifies your highest-impact improvement opportunities. See our free practice audit to confirm findings with actual billing data.
What is a good net collection ratio for a medical practice?
A net collection ratio of 94-97% is the best-practice benchmark per MGMA. The industry average is 82-87%. Every percentage point below 94% on a $1M practice equals $10,000 in annual uncollected revenue. A below-benchmark NCR almost always reflects a combination of unworked denials, eligibility errors, undercoding, and inconsistent patient balance follow-up — all addressable through systematic billing process improvements.
How can I improve my practice revenue cycle?
The five highest-impact improvements for most practices are: (1) real-time eligibility verification 24-48 hrs pre-visit; (2) reducing denial rate below 5% through AAPC-certified coding and pre-submission scrubbing; (3) improving patient balance collection through systematic follow-up; (4) renegotiating below-market payer contracts; and (5) ensuring 100% of denied claims receive a defined action within 48 hours. XMB’s revenue cycle management service addresses all five simultaneously.
How much revenue is the average practice leaving uncollected?
The average physician practice operates at an 82-87% net collection ratio, meaning 13-18% of earned revenue is never collected. For a $1M annual practice, this represents $130,000-$180,000 in preventable revenue loss per year. XMB’s free practice audit identifies exactly how much of this is recoverable in your specific practice — with dollar-impact estimates attached to each finding. Source: MGMA / HFMA.
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